Import HDG prices not following US domestic price trend

Despite the rapid uptrend in US domestic coated flat steel spot prices in recent weeks, import offer prices are only marginally higher. Trader sources have said that interest in imports has improved in the last month due to rising US domestic spot prices, but offshore mills haven't rushed to raise their own offer prices. Even though demand for futures has improved, it is still far from robust, and mills in China, India and Taiwan have been more focused on filling order books than raising prices. Current offer prices for hot dipped galvanized (HDG) and Galvalume coil wouldn't arrive until mid- to late Q4, too far in the future for many US buyers to take the gamble. But because prices are currently attractive, sources tell SteelOrbis that some orders have been placed for position tons offshore.

Mexico, which is usually quick in following the US domestic uptrend, is still offering HDG 0.012"x40.875" G30 and 0.019" x 48" G90 well below US domestic spot prices. Mexican prices for Galvalume are significantly higher, but Mexican mills overbooked, according to traders, and buyers had to revert back to US domestic material to secure their needs. If US domestic spot prices continue to make gains in the coming weeks, futures prices could rise as well. But if bookings slow on account of higher prices, traders say the offshore mills won't hesitate to take prices back down.

*DDP loaded truck in US Gulf ports

**DDP loaded truck delivered into Houston